Nicholas Wallwork

Article / Updated 08-10-2023

So much of the news around Brexit, and particularly the impact of Brexit on business, has been, well, not exactly cheerful. (Some would say downright doom and gloom, while others might say hysterical.) And although there are obviously issues to be aware of and prepare for, but plenty of businesses are finding positive opportunities in the face of Brexit. This article looks at just a few of the potential opportunities that businesses in the United Kingdom (UK) could exploit as a result of Brexit. Some of these are short-term opportunities, while others may take longer to pay off. And some will be more applicable to your company than others. These are not one-size-fits-all solutions here. It’s up to you to pick and choose the ideas that may deliver the most value for your business. Pick one or two ideas that you think best apply to your business, taking into account the size of your company, your capabilities, where your business is in its life cycle, and the wider industry in which you operate. Having cherry-picked the most applicable opportunities, you can then investigate them further. Brexit will open up new markets beyond the EU If you’re already exporting goods outside the UK, or you’re eager to explore overseas markets, Brexit could deliver a welcome boost. Or, more specifically, the devalued pound resulting from Brexit uncertainty could help to boost your export sales. A weaker pound tends to help companies that export goods overseas, because it makes UK products cheaper than those produced in countries with stronger currencies. For a reverse illustration of this, consider imports of cheap Chinese steel. Even though the product is coming all the way from China, it may still be cheaper than British steel, because it costs a Chinese steel producer less to manufacturer than it costs a British company. The UK’s ability to negotiate trade deals with other countries is far from crystal clear at the moment. So, to fully understand the impact on your exports, stay tuned to future trade negotiations. Brexit will increase domestic demand for products and services What’s the flip side of cheaper UK exports being more attractive to overseas buyers? Imports from outside the UK become more expensive for UK businesses and consumers. Of course, if you’re importing parts or products from abroad, this will cause you some headaches in terms of profitability, in which case, you may be looking to trade more with UK partners. But, on the positive side, rising import prices can bring big benefits. When foreign products become more expensive (perhaps because of currency fluctuations or trade tariffs), consumers tend to look closer to home for goods and services. In other words, your business may be more competitive than foreign companies. Brexit will lead to reduced regulation On the whole, the UK is likely to remain fairly closely aligned with European Union (EU) rules. Yet, in some areas, it’s possible that post-Brexit changes to regulations and standards may offer UK businesses greater freedom and flexibility than EU rules. Reduced regulation may make your business processes easier and quicker, and potentially reduce your costs — all of which could make your business more competitive. Help solve your customers’ Brexit-related problems If you’ve struggled to comprehend the implications of Brexit for your business, it’s fair to assume that some or all of your customers (and potential customers) may find themselves in the same boat. Consider whether there’s a market opportunity to offer tailored Brexit services to your customers. Ask yourself, “What are our customers struggling with in relation to Brexit, and how can we help them to solve those problems?” Now, this doesn’t mean you should set up a new business as an all-singing-all-dancing Brexit consultancy service (although, for those who have the skills and knowledge, such a business would probably prove quite valuable in the short term). Instead, this means Tailoring your products and services in line with your customers’ Brexit “pain points.” These pain points could be around access to labor, VAT, cash flow, stockpiling goods, seeking investment, or whatever. Tweaking your marketing messages to emphasize how your business is ready to help clients overcome Brexit hurdles. For example, if you’re an accountant primarily dealing with small and midsize firms, your clients may need extra support to understand potential VAT changes — in which case, you’re there to guide them through changes and help them implement new processes. Or, if you run a legal firm dealing with employment law, you’re well placed to help local businesses that employ workers from outside the UK stay on the right side of the law. If you’re a business coach or adviser, your clients may be looking to explore new growth strategies for their company or revise their business strategy in light of Brexit developments. This strategy is a relatively short-term one, but you may find it pays long-term dividends. By positioning your business as more prepared and more thoughtful than your competitors, you have the opportunity to gain market share and raise your company’s profile. Brexit could be your chance to build a personal reputation as a leader in your industry In addition to raising the profile of your business, Brexit may also present a tantalizing career opportunity for you. Where possible, collaborate with others outside your own organization to discuss Brexit implications, stay in the loop on the industry’s response, and strengthen your personal network. Here are just a few ways you could potentially increase your personal profile within your industry in light of Brexit: Engage on a broader scale outside your business by joining Brexit committees set up by your trade association or other organizations in your field. If the government asks for participation and consultation in your area of expertise, consider getting involved. Publish online articles and white papers setting out how your company is dealing with Brexit implications and staying ahead of the field. If you work in a large organization, you could volunteer to represent the company on industry committees and working groups, or present updates to the company’s leadership team on how your department is managing Brexit implications. Brexit may create opportunities for business process automation Rising automation is a huge topic in business, thanks largely to massive leaps in technology, robotics, artificial intelligence and so on. If your company hasn’t already looked at the potential to automate processes and roles, now is a good time to start. Looking at automation opportunities is a bit like renewing your car insurance. We all know we shouldn’t just stick with the status quo and accept the renewal price from our current insurer; we know that if we spent half a day calling around dozens of insurers, we could get a better deal elsewhere. Yet, when renewal time comes around, how many of us take the easy route and stick with the status quo? Come on, you’re among friends, be honest. Think of exploring automation as being forced to renew your car insurance the “proper” way. Sticking with the status quo isn’t an option, not unless you’ve really done your homework and you’re sure there isn’t a better alternative out there. Automation may be particularly relevant if your business is reliant on labor from overseas to fulfill critical business functions. If attracting British workers isn’t a realistic option (some industries do struggle to recruit locally and have to look farther afield), then automating certain processes may be an unavoidable long-term strategy for your business. You may think automation only applies in manufacturing or agricultural contexts, but think again. A wide range of business processes are increasingly being automated, across all sorts of business functions, including HR, sales, marketing, and finance. For example, in sales, software can now automate lead prioritization, scheduling appointments, and logging follow-up tasks. Automation doesn’t necessarily mean taking jobs away from human workers and giving them to machines. In a lot of cases, automation simply improves what human employees do by helping to streamline processes. And when your human employees are freed up from more menial, repetitive tasks (such as scheduling appointments), they have more time to focus on tasks that directly benefit the business. Therefore, use Brexit as an excuse to review your processes across the business and see where you have an opportunity to automate and improve processes. If you’re a big believer in work–life balance and the passive income mind-set, you should be constantly reviewing processes in your businesses to see what can be done quicker, cheaper, and easier with software or well-designed systems. Brexit could lead to investment from overseas investors There’s a definite sense that overseas investors have been holding back from investing in UK real estate development projects in light of Brexit uncertainty. In other words, there’s potentially a massive backlog of external investment just waiting to pile into the UK property market after the dust settles, especially because the pound is weak and investments represent better value and yield. There are indications of a wider downturn in foreign investment. Figures from the Organisation for Economic Co-operation and Development (OECD) show that foreign investment fell 90 percent in 2017, after a bumper 2016. That’s obviously concerning in the short term, but the long-term picture is more positive, with many believing that foreign investment will flood back into the country after Brexit. Why would overseas investors want to invest in UK businesses and projects? Quite simply, because the weak pound means their money goes further in the UK. They get more bang for their buck (or euros, or whatever) and the UK fundamentally remains an excellent investment location. So, when the short-term uncertainty is over, external investment will likely pick up the pace. Investment promotion agencies may be able to help your business attract foreign investors. (InvestUK is one example of such an agency.) You can also get help and advice from the Department for International Trade. Brexit could be the opportunity you need to pick up business from companies that have left the UK In the event that a direct competitor pulls out of the UK, consider whether there’s a chance to suck up some of their business. This could, for example, involve buying their client lists (where possible), advertising to their primary audience, or even acquiring the UK arm of an EU company. Take the UK fishing industry as a big-picture example. If EU countries lose the right to fish in British waters after Brexit, this could give UK fleets a much fairer share of fishing rights. (In 2018, EU fleets were landing eight times as much fish in UK waters as British fleets were landing in EU waters.) Whether you’re a fisherman or a financial adviser, if your competitors leave a gap to be filled, make sure your business is the one that fills it. Be ready to expand your market share and attract new customers. Brexit may cause homegrown support for British businesses Many in the UK see Brexit as an opportunity to become more self-sufficient, to prioritize homegrown solutions over imported products and services. (In the case of the agricultural sector, the word homegrown is highly relevant because imported food potentially becomes more expensive.) This isn’t just about Brexit, though. For all sorts of reasons, including climate change, more and more people are thinking “local” rather than “global.” Local producers, local suppliers, local services — all offer an opportunity for customers, clients, and consumers to feel more connected to the companies they deal with. People in the UK want to support UK businesses. If you’re a local alternative to faceless, global entities, don’t be afraid to say so!

Article / Updated 06-06-2023

Knowledge is power, as the saying goes. But knowledge also is a tool — a tool for building wealth and personal freedom. A bit like a spanner or a wrench, only slightly more glamorous. In most professions, continual education is key to staying on top of your game. The people who progress well and succeed are the ones who are continually evolving. Real estate is no different, and if you want to become (and remain) a successful real estate investor, you need to invest time in your education and improvement. Even as your real estate portfolio becomes more established, never be fooled into thinking you know it all. You’ll be missing out on so many important opportunities to grow and learn. I love learning from those who know more than I do, whether that comes from networking, reading books, or wherever. Even if I only get one useful nugget from a book — a tidbit that changes my mind-set or improves the way I do something — it’s well worth my time. Tap into a wide variety of educational sources Well, real estate is a very accessible industry with little in the way of formal qualifications needed to succeed, so you’ll have to think outside the formal education box when looking at ways to continually learn and grow. Thankfully, these days it’s easier than ever to access information quickly and easily, often for free or extremely cheap. Your mission is to make like a sponge and soak up all that information. This may include Reading as many books as you can get your hands on about your chosen real estate strategy: If you struggle to find time to read, try listening to audiobooks in the car or while you’re at the gym. If you commute to work every day for 30 minutes each way that’s a potential hour of audiobook training time every day, which equates to 240 hours a year! It soon adds up… . Becoming a general business, entrepreneurship and self-help book junkie, like me: I love reading both the practical how-to-succeed-in-business types of books and the more mind-set/self-help kinds, and even autobiographies by business leaders and entrepreneurs. I find it particularly inspiring to read about how people became successful and their personal formula for success. You’ll be surprised how many similar traits successful people have — and you can learn these traits and techniques, so keep reading! Staying alert to potential new real estate strategies that are a good fit with your portfolio, skills, and passion. Keeping up to date on the latest technology developments, from social media platforms to productivity apps and software for managing your real estate investments: You don’t need to be a tech genius to thrive in real estate, but you don’t want to miss out on opportunities to connect with people more easily and streamline your processes. Harnessing the wealth of information available for free online by joining property forums, delving through relevant thread archives on forums, signing up for relevant industry newsletters, and subscribing to blogs. Attending education seminars held by property investment and development companies: These seminars often free to attend because the goal of the seminar is usually to sell you a product or investment. So, although I wholeheartedly encourage you to tap into these free sources of education, never buy anything on the day. Always go away and do your homework after the seminar because there are plenty of paid courses not worth the paper they’re printed on. Signing up for online real estate and business courses, such as those available through Udemy and Coursera. Attending big annual property shows and exhibitions: These shows provide fantastic educational and networking opportunities and are a great way to immerse yourself in the market and to learn what others are doing. Being open to new mind-set-related, self-help techniques and approaches (for example, positive affirmations, visualization, the law of attraction, and meditation). Taking the time to build mind-set-related, self-help techniques into your daily routine: As in any industry, there are operators out there looking to make a quick buck from inexperienced real estate investors who are keen to learn. So, don’t automatically believe everything you’re told by someone in a seminar where the end goal is to sell you something. Soak up their information; then assess that information against other sources as well. If multiple different sources are telling you that Morocco is a great place to invest, that’s very different from one guy pushing Moroccan investments at a seminar. Take time for education before you put your real estate investment money on the line Although continual education is an important part of success, take the time to immerse yourself in real estate and learn as much as you can before you embark on your first investment. Learning as you go is great, but mistakes in your early days can be costly. Immerse yourself in property education for at least six months before you put your money on the line with an investment. Why not set yourself some education targets to hit before you start seriously scouting for investment opportunities? For example, you can set yourself a target of reading one inspirational book a month, attending six property shows this year, and participating in property forums once or twice a week.

Article / Updated 05-03-2023

Brexit spawned lots of questions surrounding the General Data Protection Regulation (GDPR). Unless you’ve been living under a rock for the past couple of years, you’ll have read and heard a lot about the impact of the GDPR, which came into force on May 25, 2018. But with GDPR being a European Union regulation, do UK businesses still have to comply with GDPR rules after Brexit? The short answer is yes, businesses in the UK still have to comply with GDPR rules even after Brexit. But, in some cases, the specifics of how your company handles data may change slightly after Brexit. Recognizing that GDPR is enshrined in UK law and Brexit won’t change that In a nutshell, GDPR is designed to give every EU citizen greater control over his or her personal data, including name, date of birth, and email address. It ensures that companies can’t store and use the personal data of EU citizens without their explicit consent, and promotes the fair, transparent use of personal data. The fact that UK citizens will no longer be EU citizens after Brexit doesn’t matter. Implementation of GDPR in the UK is covered by the UK Parliament’s Data Protection Act 2018. So, GDPR is already written into UK law, and the government has committed to maintaining GDPR compliance in the UK. This ensures that UK citizens will continue to get all the same protections as their EU neighbors, when it comes to the fair use of their data. This means all the protocols you’ve put in place to lawfully handle the data of your customers (whether they’re in Europe or the UK) will still apply, and you should absolutely maintain compliance with GDPR. But why continue with something that originated as EU law when so much of the rhetoric surrounding Brexit was about “taking back control”? The cynical answer is that businesses and public bodies in the UK have already spent millions ensuring their data practices were fully compliant with GDPR. If the government backtracked on GDPR now, it would mean all that expenditure was pointless. After all the time, effort, and money spent, it would be crazy to “undo” GDPR in the UK. The less cynical answer is that GDPR is a good thing, for organizations and for individuals. Sure, it brings additional burdens in terms of compliance, but there’s no doubt it provides important protections for citizens’ private data. As technology advances and the world becomes increasingly driven by data, these protections will only become more valuable. It’s also important to remember that any close relationship between the UK and the EU going forward is likely to be dependent upon both parties having similar regulatory systems. Therefore, GDPR is just one area where British businesses will effectively be operating in line with European businesses. Transferring data between the UK and the EU after Brexit Broadly speaking, how UK businesses handle personal data will stay the same. But there’s a big uncertainty around what happens to businesses that transfer data between the UK and the remaining EU27 countries after Brexit (for example, if a company has offices in the UK and Europe, or if a UK business uses a cloud service provider based in the EU). Under GDPR, data cannot be transferred between the EU and third countries (non-EU countries) unless those countries have been deemed to have “adequate” data protections in place. In the less likely event of a no-deal Brexit, the UK will immediately be considered a third country, which means that the European Commission will need to assess that the UK has adequate levels of protection in order for the smooth transfer of data to continue. (In theory, the Data Protection Act ensures that the UK does provide an adequate level of protection, but as with so much of Brexit, it’s a case of wait and see whether this plays out in reality.) And if the UK does exit with a withdrawal agreement in place, then, for the duration of any transition period, data transfers can continue as normal.

Article / Updated 11-14-2022

The political situation that has been created as a result of Brexit has many asking, “what is Brexit all about?” In order to fully understand what Brexit means, you have to look at a little bit of history. The 2016 Brexit referendum wasn’t the UK’s first vote on Europe. In 1975, there was a referendum on whether the UK should stay in the European Economic Community (EEC). The result of that referendum was a firm “Yes, please, we’d like to stay in,” with 67.2 percent of voters voting in favor. Let’s take a look at the past to see what Brexit is all about. Looking at the Brexit decision: The 2016 EU referendum results in more detail Fast-forward a generation, and the 2016 Brexit referendum turned the previous result on its head, but by a narrower margin. Overall, 51.89 percent voted to leave the EU, while 48.11 percent voted to stay in. But the UK is made up of four different countries, and, interestingly, the individual countries voted in quite different ways: England voted Leave, by 53.38 percent to 46.62 percent. Scotland voted Remain, by 62 percent to 38 percent. Wales voted Leave, by 52.53 percent to 47.47 percent. Northern Ireland voted Remain, by 55.78 percent to 44.22 percent. Why did people vote to leave in favor of Brexit? It’s difficult to fully understand the consequences of Brexit. For that reason, the answer will vary depending on who you ask. But some of the key reasons Leavers wanted out of the EU included the following: Having to make financial contributions to the EU’s annual budget Free movement of people and the perception that immigration from Europe was too high Wanting the UK to be able to negotiate its own trade deals, instead of negotiating as part of the EU bloc Perceived lack of UK “sovereignty” or control, with the UK being bound by EU rules and regulations Meanwhile, those on the Remain side of Brexit pointed out that, as with any EU member, the UK directly benefited from the EU budget — and from free movement of people and the EU single market, for that matter. Many Remainers also felt that the UK should be integrating closer with Europe, not distancing itself from its closest neighbours and biggest trading partner. What is Brexit all about? Understanding the UK’s complex relationship with Europe It’s fair to say that the UK never really bought into the dream of a fully integrated Europe, and it kept Europe at arm’s length whenever possible. When the EEC was formed in 1957, the UK didn’t sign up. And when the UK did apply, in the 1960s, its entry was vetoed by a skeptical France. The UK eventually joined the club in the 1970s but remained, in its own way, distant from Europe. Over the years, the UK has voted against or opted out of key EU arrangements, such as the euro single currency or the Schengen passport-free travel area. Throughout the 1990s and later, as Europe moved toward greater integration (political and social integration, as well as economic integration), Euroscepticism really began to grow in the UK. Nationalist parties like the UK Independence Party (UKIP), whose main mission was to get the UK out of the EU, grew in popularity and tapped into voter concerns around immigration in a very effective way. UKIP finally won a seat in the UK Parliament in 2014. A year later, in the run-up to the UK general election, the Conservative Party manifesto included the promise of an EU referendum. The Conservatives won, and the EU referendum took place a year later. Why Brexit happened: Looking at the key elements of the Brexit negotiations The withdrawal negotiations between the UK and the EU seemed to go on forever, but really they’re just the tip of the Brexit iceberg. That’s because the withdrawal agreement only covers the UK’s departure from the EU. It doesn’t agree on critical elements of the future relationship between the two, such as trade. The Brexit withdrawal agreement is purely about getting the UK out of the EU in an orderly manner. Trade negotiations — and agreements that cover cooperation in areas like security and defense — will not begin until after the UK has left the EU. This was a big area of misunderstanding for a lot of people, who assumed the “Brexit deal” was essentially a trade deal. So, what does this orderly exit involve? To ensure the UK’s exit would be as smooth as possible, the two sides negotiated the following key points as part of the withdrawal agreement: The divorce bill, or how much the UK has to pay to cover its existing commitments to the EU. The transition period (also known as implementation period), which is designed to ensure a controlled transfer, and give governments and businesses time to prepare for life after Brexit. The rights of EU citizens already living in the UK (and the rights of UK citizens living in the EU) to retain their residency status after Brexit. Also, that the free movement of people would continue until the end of the transition period. Theresa May had made it clear during negotiations that free movement of people would have to end after the transition period — it was one of her “red lines” that she refused to budge on. The fact that the UK will have to abide by EU laws for the duration of the transition period — something that raised a lot of eyebrows among Brexiteers. How to avoid a hard border between Northern Ireland and the Republic of Ireland. The withdrawal agreement includes a provision for a temporary customs union between the UK and the EU until a trade deal is agreed upon, and this is known as the This backstop measure proved extremely unpopular among Brexiteers (and even many Remainers), even though it was designed to prevent a hard border and protect peace on the island of Ireland. The UK’s ongoing relationship with the EU in areas such as trade is not part of the withdrawal deal because, at the time Brexit negotiations were taking place, none of that had been negotiated yet. The political declaration sets out a vague aim to agree on a trading relationship that’s as close as possible, but it avoids any specific details.

Cheat Sheet / Updated 11-14-2022

Making sense of Brexit can feel like a full-time job. Find out what Brexit is and why it happened, how it impacts the economy, and what happens if the United Kingdom decides to rejoin the European Union in the future.

Article / Updated 07-25-2022

To truly understand the effects of Brexit, we need to understand the key issues that came to the fore during the Brexit referendum campaign. Many of these issues run right to the heart of Britain’s problematic relationship with the EU. Read on to discover how Brexit will impact finances, immigration, trade, and sovereignty in the United Kingdom. The financial impact of Brexit: Britain’s contributions to the EU No discussion would be complete without mentioning the financial impact of Brexit. Central to the arguments of many Eurosceptics was the belief that the UK gave the EU much more, financially speaking, than it got back in return. How much does the UK really pay in? The UK’s contribution toward the EU’s budget changes each year. But, as an example, the UK made a gross contribution of €13 billion to the EU budget in 2017. (Without the rebate, the UK’s gross contribution would have come to more than €18 billion.) In return, the UK received around €4 billion in EU spending, making its net contribution around €9 billion. Remember that famous bus from the referendum campaign with the slogan on the side claiming that the UK sends €350 million a week to the EU? That figure excluded the rebate and the money the EU gives to the UK for public projects and funding. The UK also benefits from EU membership in ways that are much, much harder to estimate, including increased flow of investment, and the ability to buy and sell products easily within the EU. But, yes, the UK does contribute more to the EU budget than it gets back. In fact, the UK is one of the biggest contributors in the EU. Much has been said about the fact that the UK contributes more to the EU budget than 26 other EU members combined. And this statistic is true. But perhaps a less emotive way to look at it is this: According to Full Fact, in 2017, the UK’s net contribution totaled 18 percent of all net contributors. From a completely neutral standpoint, it makes sense that richer countries in the EU will contribute more than the poorer members (who are net beneficiaries of EU money). But, still, it’s a hard thing to sell to voters — particularly in parts of the UK that have struggled economically. Feeling the squeeze as Brexit approaches On top of this, there’s been a reduced UK rebate — as the UK prospered, Tony Blair brokered a deal to give up some of its rebate — and calls from some EU members to scrap the rebate completely. What’s more, in recent years, the EU has moved to include sex work and sales of drugs in gross domestic product (GDP) calculations, which further boosts the UK’s estimated contribution. (In 2014, the Office for National Statistics began adding up the contribution to the economy made by prostitutes and drug dealers — it came up with a figure of almost €10 billion!) As one newspaper headline put it at the time, the EU would be making the UK pay for our, er, bad habits. GDP is the term used to describe the value of all the goods and services that a country produces in a given time (usually calculated annually). As a measure, GDP is used to indicate a country’s prosperity and national development. You may also hear people talk about GDP per capita, which measures the ratio of GDP to the country’s population. To cut a long, and very complicated, story short, Eurosceptics were uneasy about the UK’s significant contribution to the EU’s spending pot, and questioning whether it was all worth it. “Picking up the slack” for others? Under EU rules, a member state’s budget deficits (where spending is higher than revenue) must not exceed 3 percent of GDP. And public debt (government and public agencies’ debt) must not exceed 60 percent of GDP. These rules are designed to ensure EU members manage their public funds in a sensible, sustainable way. That’s the idea anyway. The Italian government is going through a disciplinary process for falling foul of these rules, after reporting a deficit of 3.1 percent and public debt of more than 130 percent of GDP. To put that in context, the UK’s deficit is 1.8 percent of GDP and public debt is around 87 percent of GDP — the latter being higher than the EU’s threshold, but nowhere near as large as Italy’s. This disparity across the EU is another major underlying factor in the UK’s distrust of Europe. To some, it seemed the UK was picking up the slack or propping up countries that were not as fiscally responsible as others. How Brexit will affect immigration and the free movement of people Many Remainers suggest that immigration was behind the UK public’s decision to vote “out.” It wasn’t the only issue, but public opinion appears to show that it was one of the key factors. But, for some reason, the issue seemed to catch the mainstream political parties by surprise — even though the growing backlash against the idea of free movement was plainly obvious to anyone who read the newspapers or listened to the average conversation on the high street in the run-up to the Brexit referendum. To stem the negative tide, before the Brexit referendum, David Cameron tried to negotiate a “handbrake” system for the UK benefits system. This system would have denied EU migrants full benefit entitlements for a set period of time after they arrived in the UK, and was designed to combat sentiment that too many EU migrants came to the UK to claim benefits. However, EU leaders believed this system went against the principle of the free market, and the idea was rejected. Not only did large sections of the UK media portray EU migrants as coming for the benefits, but it also portrayed them as “pinching British jobs.” The two fears aren’t exactly compatible — are migrants coming to live off welfare or to steal people’s jobs, which is it? — but it goes to show how Brexit is such an emotive issue for Brits. Ultimately, the overwhelming sentiment from much of the media was that EU migrants were a “drain on the system.” Yet, official government figures show that EU migrants are in fact net contributors to UK finances, meaning they pay more in taxes than they take out in terms of public services (like healthcare, education, and so on). In fact, an Oxford Economics study found that the average EU migrant contributes €2,300 more to the public purse each year than the average British adult. In other words, EU migrants living in the UK more than pay their way. The tricky issue of trade under Brexit Opinions and statistics regarding UK–EU trade will vary depending on who you talk to, and in fact the UK and EU calculate export trade differently (which is helpful of them). One thing is clear, though: The UK runs a trade deficit with the EU as a whole, which means the UK imports more goods and services from the EU than it exports to the EU. In 2017, UK exports to other EU countries totaled €274 billion while imports from the rest of the EU into the UK totaled €341 billion. Those figures are based on Office for National Statistics data — the EU calculates imports and exports slightly differently. Depending on which source you look at, between 8 percent and 18 percent of EU exports arrive in the UK. Meanwhile, UK exports to the rest of the EU come to well over 40 percent of total UK trade. This means the UK is heavily reliant on the EU as a trade customer. On the other hand, a staggering 23 member states have a trade surplus with the UK — which means they export more to the UK than they import from the UK. Germany and Spain are the biggest EU exporters to the UK. On that basis, Eurosceptics argue it’s in the EU’s best interest to negotiate a trade deal with the UK as soon as possible. There’s also the issue of financial markets. As a leading worldwide stock market, London is key to Europe’s money markets and commodities, and many European companies have loans that are financed through London. Quite what will happen when these loans are due to be refinanced remains to be seen. But if a workable solution isn’t reached, it will impact not only the London financial market, but also European money markets and everyday European businesses. Brexit and UK sovereignty Slowly but surely, more and more power has been transferred from EU member states to Brussels. As an example of this, the European Court of Justice has dealt a number of hammer blows to the UK government with various policies being ruled illegal. A key argument of Eurosceptics was that the British public never voted to join a federal Europe, where the UK’s laws would be dictated by the EU. Nor did they agree to the European Parliament having the final say on policies passed by the UK Parliament. The UK joined an economic union, not a social and political union. If the people voting in the 1975 referendum had known they were ultimately voting to stay in a federal Europe, would the result have been different? Quite possibly. A big part of the problem lies with the politicians, here — specifically, a lack of honesty on where Europe was going and what it would mean for UK sovereignty. In his 1971 white paper on joining the EEC, then Prime Minister Edward Heath promised “no erosion of essential national sovereignty.” Yet, in 1972 the UK Parliament passed the European Communities Act, which accepted the supremacy of EU law. You could argue Heath’s word essential leaves some wriggle room, but, to the voting public decades later, it seemed like the wool had been pulled over a lot of people’s eyes. The Brexit vote: How the Brexit referendum results played out across the UK The UK’s constituent countries voted quite differently in the Brexit referendum. The following breaks down the Brexit vote results by country. UK Countries Brexit Vote Results Country Percent Voting to Leave Percent Voting to Remain Result England 53.38% 46.62% Leave Scotland 38% 62% Remain Wales 52.53% 47.47% Leave Northern Ireland 44.22% 55.78% Remain Devolved parliaments in Scotland and Wales (even though Wales voted to leave as a nation) have been highly critical of the move to leave the EU, and the ruling Scottish National Party (SNP) government in Scotland has been trying to use the result to push for another Scottish independence referendum. The situation in Northern Ireland is slightly different, with the ruling Democratic Unionist Party siding with the UK government on Brexit (even though the public in Northern Ireland voted to remain). And despite the fact that the Welsh population voted to leave, the Welsh devolved parliament is siding with its Scottish counterpart on a remain policy. Isn’t politics fun? In any case, what this will ultimately mean for the United Kingdom as whole remains to be seen. For now, the jury’s out, and we’ll wait to see if a Scottish independence vote does materialize. Meanwhile, what did the EU make of the Brexit referendum? Like many in the UK, prior to the Brexit referendum result, EU officials generally felt there wasn’t a chance in hell that the British public would vote to leave the EU. Secure in this belief, the EU itself took quite a backseat role in the Brexit referendum, doing little to play up the benefits of EU membership or counteract claims from Leave campaigners. Just like David Cameron, the EU was looking forward to finally resolving this nagging issue of a UK exit. The vote for the Brexit referendum was supposed to kick the subject into the long grass so that everyone could get back to the business of governing. But things didn’t exactly pan out that way, and the UK’s tumultuous relationship with the EU was reaching its painful, drawn-out climax. Regardless of any split opinions, Brexit will have an impact on world relations in years to come.

Article / Updated 09-20-2021

Passive income is the key to building real wealth. Think of passive income as another name for yield (the money you make on an investment). What makes it passive is that, after it’s up and running, the investment requires minimal input from you for the income, or yield, to keep coming in, month after month. In other words, you invest some of your time and money upfront, and you get money back in return on a regular basis. Your money starts working for you, not the other way around. Sounds good, right? When people think of making money through real estate, their first thought is often capital growth (for example, buying a property for $200,000 and selling it six months later for $270,000). That’s a solid approach to making money, and capital growth projects certainly can make up part of any portfolio. If you’re going to treat your property portfolio as a business, you need to think about income, as well as capital growth. Investing for income tends to be less risky and more reliable than capital growth — because money in the bank this month, and next month, and the month after that is safer than relying on future growth. That’s not to say you won’t achieve capital growth alongside income. If you own a collection of rental and serviced accommodation properties, for instance, those properties will likely grow in value over time. In this way, capital growth is like a cherry on top of a delicious income sundae. Generating income from real estate is so exciting because it’s relatively hands-off compared to, say, working 9 to 5 for a paycheck. In that way, it can be described as passive income. The great Warren Buffett once said, “If you don’t find a way to make money while you sleep, you will work until you die.” So, if you like the idea of making money while you slumber (and, honestly, who doesn’t?), then the passive income mindset is for you. It’s important to note that passive income isn’t just about making more money (although that is, of course, a big attraction). It’s not about greed. It’s about rethinking the fundamental nature of work and developing the means to live life your way. For you, it may mean putting in a few hours in the morning and having the rest of the day off, or having a four-day weekend, or never wearing a suit again! In short, passive income gives you more freedom — to do whatever you want. Passive income isn’t a get-rich-quick scheme. It takes time to build up a good level of passive income. So, if you’re looking to quit your job and devote yourself to real estate full time, it may be a while before you’re comfortable giving up the security of your existing income. Examples of passive income Anything that generates money and isn’t directly tied to your effort or output (in the way of a regular job) is considered passive income. So, investing in the stock market can be considered passive income. So, too, can real estate. What’s great about real estate investing is that there are so many exciting sub-strategies for generating a regular income, including the following: Property development Rent-to-rent Houses in multiple occupations Student and vacation rentals If you think passive income ventures like these require a lot of upfront capital, think again. Rent-to-rent, for instance, requires nothing more than the first month’s rent and deposit to get started — and sometimes less than that! In this way, property can offer a fairly low-capital route to passive income. This is why I believe real estate is probably the most achievable path to passive income for the average person on the street. It can create serious wealth, too, if done right. Pros and cons of passive income Here are the pros and cons of passive income, as this author sees them. On the plus side passive income gives you: More time and freedom: Assuming you build up to a level of passive income where you no longer have to work 9 to 5, you have much more choice in how you live your life and more time for the things you love. Better work-life balance: You can be there to take the kids to school and pick them up at the end of the day, and manage your real estate investments when it works for you. The ability to indulge your passion — and your talents: Concentrating on passive income has allowed me to invest in projects that genuinely interest and excite me. You can spend time on the parts of the business you find most interesting or are the best use of your time. The rest you can outsource to people who are better qualified. Passive income gives you the means to reach your full potential. What could be more satisfying than that? On the downside, with passive income: You have to take a longer-term view. Passive income isn’t about getting rich overnight. It’s about rethinking the way you work and earn money for the long haul. There’s a cost to being more hands-off. As your portfolio grows, you’ll probably have to outsource some of your workload to other people and/or invest in technology to take care of certain tasks for you. This means sacrificing some of your income to cover these costs. For me, the additional cost is well worth it because it frees me up to focus on new opportunities and profit-enhancing activities. You can’t get away with putting in zero effort. “Low” or “minimal” effort, sure. But not zero effort. You need to invest some time in your investments, both in terms of establishing your new projects and checking in on them regularly. When you’ve got a property up and running nicely, and you’re generating a regular income from it, don’t make the same mistake as a lot of investors and ignore the property. If things go wrong because you’ve stepped off the gas, you’ll have to devote lots of time and energy to get things back on track. To keep your investments on track, you’re far better off spending a little time often than spending a lot of time only occasionally.

Article / Updated 05-26-2021

Value is easy, right? It’s the price you pay for a property? Well, it’s not quite that simple — price and value aren’t always the same thing. Real estate appraisal or property valuation is the process of determining what a property is actually worth. This may or may not be the same as its price. Appraisers go under different names depending on where you are in the world; real estate appraiser, property valuer, and chartered surveyor are the most common names. The terms appraiser, valuer, and surveyor are used interchangeably. Compare price to value in more detail A property’s price (how much the property costs to purchase) can be very different from its value (what the property is worth). For example, a property may actually be worth in the region of $300,000 but the seller may have an inflated idea of its value and insist on putting it on the market at $350,000 — or he may have been guided to set the price high by an especially greedy agent who wants a higher commission. A buyer with a firm grip on valuation will understand that $350,000 isn’t a fair market comparison for that property, and refuse to cough up. But an unsuspecting and inexperienced investor could fall into the trap and end up overpaying. There are a number of reasons why a buyer may gladly pay a price that’s lower than the property’s value. The buyer could, for example, be buying a property from a family member, who is cutting her a favorable deal and pricing lower than the market value. Or it could be a distressed sale where the property is priced lower than it’s worth for a quick sale, or perhaps it’s being sold at auction and the bidding doesn’t reach the expected levels. A buyer may also be willing to pay more than a property’s market value in order to secure a particularly attractive investment in a highly competitive market. That’s right, sometimes an investor may have arrived at her own valuation that’s higher than the comparative market value, maybe because she plans on changing the use for a niche high-income strategy (like short-term rentals, for example). If, when you’re valuing a property, you’re using a different valuation method from the person doing the appraisal, you may well arrive at a different value. That’s not necessarily a cause for concern, as long as you’re sure of your own numbers. The purpose of appraisals In general, appraisals or valuations are used in a number of contexts, from dividing up assets during a divorce to taxation. But for the real estate investor, valuation is used to determine How much you can borrow to purchase a property (because appraisals inform mortgage loans) How much you should reasonably expect to pay for a property How much a property could generate in ongoing income (where income is the investment goal) How much you could sell the property for after adding value (where capital growth is the investment goal) Valuation is particularly important in real estate because each property is different. As an asset class, property is unique. When you buy two shares of stock on the same day, both shares are identical. But that’s not the case with real estate. Even two properties on the same street can be very different. In fact, even two houses next to each other, even if they’re both identical in size and layout, will vary a great deal in terms of condition, fixtures, and fittings and presentation. Their value will differ accordingly. Valuation is also necessary because most people fund their investments through some sort of financing, like a mortgage. And when you’re borrowing the money to buy a property, the lender will want to know that the property is worth what it’s loaning you. If you default on the loan, forcing the lender to foreclose on the property and sell it, the lender wants to know that there’s enough equity in the property to get its money back. In this way, real estate valuation protects the bank, as well as you. Factors that influence property value So, what kinds of factors impact a property’s value? The key factors are The size of the property: For example, it makes sense that a four-bedroom, three-bathroom house will be worth more than a two-bedroom, one-bathroom house in the same town. The condition of the property: This is key because it’s how so many investors add value to a property. By renovating and improving a property, even if you’re not doing major structural remodeling, you can increase its value in a relatively short amount of time. How the property is (or can be) used: For one thing, a commercial property will be valued differently from a residential property. What’s more, various usage restrictions may also impact the value. For example, if zoning restrictions mean it’s impossible to turn a commercial property into a luxury block of apartments, then that restriction may impact how much buyers are willing to pay. The property’s location: Compare a four-bedroom, three-bathroom house with a smaller house in the same town and it makes sense that the bigger house is worth more. But things get foggier when you bring different locations into the mix. Compare that generous family home in Des Moines, Iowa, with a studio apartment in Midtown Manhattan and the smaller property is likely to be worth more. That’s because different locations are more desirable and valuable than others. Additional local factors like a nearby, highly rated public school or great transportation links can also drive up a property’s value. Supply of property: A few years ago, there was a lot in the real estate news about Bulgarian apartments. Investors were piling into the country in droves, and new apartment buildings were being thrown up left, right, and center in coastal and ski resort towns. The result? A market that ended up with way more supply (new-build apartments) than demand (actual buyers) and apartment blocks sitting empty and unsold. Compare that with, say, a sought-after coastal village location in Cornwall, in England’s beautiful West Country, where supply of properties is relatively low. Because few properties come onto the market, their value is higher than if there was a deluge of available property. Demand for property: Think back to the tiny studio apartment in Midtown Manhattan, and you can see how being in a buoyant real estate market, like New York, can impact a property’s value. In a market where there’s a wealth (pardon the pun) of motivated buyers keen to purchase property, combined with plenty of money to buy, demand goes up — and with it, market value. Who values real estate? So, who has a hand in deciding a property’s value? Depending on the circumstances, the following people may all be involved in the process at some point: Sellers: Plenty of sellers do their own homework on what their properties may be worth before they put them on the market. And, at the end of the day, it’s the seller who weighs the agent’s recommendation and agrees on the final price. Buyers: Informed buyers do their own research and analysis, and reach their own conclusions on the fair price for properties. Real estate brokers and agents: Any good real estate broker or agent knows her market inside and out, and she’ll have a really good handle on the likely value of a property. That said, it’s not uncommon for an agent to quote a higher valuation to get a seller’s business (and a juicier commission), even though this can result in an overpriced property languishing on the market for longer than it needs to. So, when an agent gives you a valuation, do your own homework to determine whether that’s a correct and fair price for your market. Professional appraisers, valuers, or surveyors: Whenever you’re seeking funding to buy a property, the lender will send a professional appraiser to value the property. (By “professional,” I mean that many countries require appraisers to be qualified and certified.) Depending on the lender and type of funding, you may have some flexibility to appoint the appraiser yourself, or choose from a shortlist of the lender’s appraisers (this is not unusual on a commercial mortgage in the United Kingdom). Many times, though, the lender will simply appoint its own appraiser, and you’ll have no say in the matter. Either way, you’ll ideally have the option of being present at the valuation. Be aware that a lender-appointed appraiser may not have a ton of experience in your type of investment; for example, he may specialize in standard residential properties rather than income-generating rentals.

Article / Updated 09-23-2019

The Brexit vote has created uncertainty. Many are speculating as to what relations will look like in a post-Brexit world. To get a better handle on what to expect, let’s take a look at the key elements behind the Brexit vote. The withdrawal negotiations between the UK and the EU seemed to go on forever, but really they’re just the tip of the iceberg. That’s because the withdrawal agreement only covers the UK’s departure from the EU. It doesn’t agree on critical elements of the future relationship between the two, such as trade. The withdrawal agreement is purely about getting the UK out of the EU in an orderly manner. Trade negotiations — and agreements that cover cooperation in areas like security and defense — will not begin until after the UK has left the EU. This was a big area of misunderstanding for a lot of people, who assumed the “Brexit deal” was essentially a trade deal. So, what does this orderly exit involve? To ensure the UK’s exit would be as smooth as possible, the two sides negotiated the following key points as part of the withdrawal agreement: The divorce bill, or how much the UK has to pay to cover its existing commitments to the EU. The transition period (also known as implementation period), which is designed to ensure a controlled transfer, and give governments and businesses time to prepare for life after Brexit. The rights of EU citizens already living in the UK (and the rights of UK citizens living in the EU) to retain their residency status after Brexit. Also, that the free movement of people would continue until the end of the transition period. Theresa May had made it clear during negotiations that free movement of people would have to end after the transition period — it was one of her “red lines” that she refused to budge on. The fact that the UK will have to abide by EU laws for the duration of the transition period — something that raised a lot of eyebrows among Brexiteers. How to avoid a hard border between Northern Ireland and the Republic of Ireland. The withdrawal agreement includes a provision for a temporary customs union between the UK and the EU until a trade deal is agreed upon, and this is known as the This backstop measure proved extremely unpopular among Brexiteers (and even many Remainers), even though it was designed to prevent a hard border and protect peace on the island of Ireland. The UK’s ongoing relationship with the EU in areas such as trade is not part of the withdrawal deal because none of that has been negotiated yet. The political declaration sets out a vague aim to agree on a trading relationship that’s as close as possible, but it avoids any specific details. Deal or no deal? The Brexit deal goes down to the wire Although the EU27 leaders signed off on the withdrawal agreement and political declaration, Theresa May had her hands full trying to get approval from the UK Parliament. The original Brexit vote, which was scheduled for December 2018, was postponed at the last minute when it became obvious that almost no one in Parliament was prepared to support the deal. The Irish backstop was the main objection for most people, amidst concerns that it could inadvertently trap the UK in a permanent customs union with the EU — without the option to withdraw from that customs union in the future. The Brexit vote eventually took place in January 2019, at which point the UK Parliament spectacularly rejected (by a record majority) the Brexit deal that May and her team had spent almost 18 months negotiating. But, like a fading Hollywood franchise that refuses to die, Theresa May brought the withdrawal deal back for a second vote, and a third, both in March 2019. Both times, Parliament rejected the Brexit deal. With just a couple of weeks to go until the intended exit date, the UK was on the verge of crashing out of the EU with no approved deal, meaning no transition period and potential chaos for UK businesses. The EU looked on open-mouthed as chaotic scenes unfolded in Parliament. Meanwhile, the British public (and their Parliament) split further into factions: Some wanted to leave the EU with no deal, some wanted to delay Brexit and start negotiations again, some called for Brexit to be canceled altogether (a prospect that the EU had paved the way for when it agreed that the UK could just revoke Article 50 without getting the EU’s agreement), and many called for a second EU referendum. At this point, MPs voted to wrestle control of the Brexit process from Theresa May and her government, meaning they could begin to debate their own ideas on how to get Brexit done. Unfortunately, this didn’t work out either — it became glaringly obvious that there was no consensus on how best to leave the EU. All sorts of options were proposed: Leave the single market but remain in the customs union, leave the customs union but remain in the single market, have a second referendum on whatever deal is agreed upon, have a nice cup of tea and watch Killing Eve. (Okay, the last one is made up, but you get the idea — it seemed everyone had a different idea on how best to proceed.) All options were rejected. So, they voted on Brexit again. And all options were rejected again. As one British newspaper put it at the time, MPs took back control of the Brexit process, only to discover that they didn’t know what it was they wanted. Amidst all the confusion, the EU took matters into its own hands and decided to extend Article 50 until April 12, 2019 — an extension of two weeks to help get something, anything, through Parliament. This short extension wasn’t enough, though, and the EU and the UK then agreed on another extension, pushing the Brexit date back to October 31, 2019. If this painful process proved anything (beyond the UK’s incredible talent for comedy), it’s that Brexit means different things to different people. Remember that the referendum was a simple in/out vote. People were asked, should the UK remain in the EU or leave? Those who voted leave weren’t voting for a particular type of Brexit on the ballot sheet; they were just voting to leave. Therefore, some of those who voted out undoubtedly had a hard Brexit in mind, while others will have leaned more toward a softer Brexit and maintaining close ties with Europe. Therefore, when politicians talk about Brexit being “the will of the people,” what they’re really doing is interpreting their own version of the Brexit referendum result in line with their political position on Europe. As such, “the will of the people” has been used as an argument for a no-deal Brexit by hardliner Conservatives. Meanwhile, the opposition Labour Party, has interpreted the “will of the people” as meaning a softer Brexit.

Article / Updated 09-23-2019

Brexit, market shifts, global financial crises, advancing technology — businesses have always had to cope with uncertainty and change in one way or another. While Brexit presents new challenges, stay confident that this is a storm your business can weather. When the going gets tough — whether it’s temporary disruption or huge industry change — the businesses that survive (and thrive, in fact) are the ones that keep their eyes on the ball while finding ways to adapt. This article looks at practical ways to maintain a successful business in the light of Brexit, even when times are changing and uncertainty is rife. Whether you’re a small business owner, a leader in a larger company, or the manager of a team, this article helps you keep focused, stay positive, and continue to deliver great results. Do a Brexit impact assessment There’s an old saying in business: You can’t manage what you don’t measure. Sure, Peter Drucker, the management guru who coined the phrase, was talking about using key performance indicators to track progress, but I think there’s a deeper lesson to learn here. Namely, if you don’t first get the lay of the land, how on earth can you expect to steer your business or team in the right direction? If you don’t understand the potential impact of Brexit, how can you manage it? Work with a “dream team” of experts to get through Brexit A dream team comprises experts in all the fields where you lack specialized skills and knowledge. These would be professional advisers, and you should rely on them to give you the most relevant, accurate, and up-to-date advice you need to steer your businesses correctly. Brexit is a complicated, evolving subject, and you’ll undoubtedly need professional expertise to guide you in certain areas as the business climate changes. If you already have that expertise in house, great! Consider, though, whether your in-house dream team could benefit from upskilling and training to ensure they have all the right knowledge and tools at this time. If you don’t have the people in house, it’s never too late to start expanding your network and connecting with expert, external services. This may involve: Connecting with specialists via your local networking groups Seeking word-of-mouth recommendations from people you know and trust Connecting with experts online via LinkedIn and specialist forums You could, of course, spend an awful lot of your own time keeping up with nitty-gritty Brexit developments, researching legal implications, deciphering potential tax changes, and all that jazz — but is that really the best approach for your business or the best use of your time? Probably not. That’s what your professional advisers are for. Besides, it’s not a great idea to rely on your own reading of the Brexit situation. If you misread new rules, for instance, it could end up costing your business dearly in the long term. Seek professional advice and make sure your business gets it right the first time. Stay in the loop on Brexit developments Remember when you were advised not to get too embroiled in the latest, nitty-gritty Brexit developments? (Of course you do, it was only a couple of paragraphs ago.) To be clear, this isn’t permission to ignore Brexit developments altogether, or bury your head in the sand. Sticking your fingers in your ears and singing “la la la” — tempting though it may be sometimes — isn’t much of a strategy. Bottom line: You do still need to stay in the loop on the latest big-picture Brexit news. Even if the latest development isn’t what you, personally, wanted to see happen. Even if you’re exhausted by the subject (as many people are). If you don’t stay up to date at a basic level, how will you know what questions to ask your dream team of expert advisers? Engage with government support and business resources for Brexit Many business owners, leaders, and managers are in the same boat as you — trying to pick their way through an extremely complicated subject and unearth the practical implications for their business. You’re not alone, in other words. Recognizing this need for clear information, the government and lots of independent organizations are offering support for businesses. The Confederation of British Industry is one great example of this. Keep your foot on the gas to get through Brexit Change usually affects a company in one of two ways: It spurs the business on to evolve and adapt. In this scenario, change is a force for good, something that encourages innovation, positivity, and excitement. It sucks the energy and motivation from a business. People get distracted by temporary uncertainty. Engagement dips. Negativity rises. Everyday business activity suffers. Which camp do you want your business to be in? Don’t let your business get distracted by Brexit-related uncertainty (or any business uncertainty, for that matter). Don’t get bogged down or take your foot off the gas. Stay focused on your core activities at this time — “core activities” means continuing to deliver outstanding products, and wowing your customers or clients with incredible service. Isn’t that why you started the business in the first place? (Or, if you’re an employee, isn’t that why you get out of bed and go to work each day?) If you let that everyday activity slip, if you don’t stay true to your business’s mission, even if it’s just for a little while, your customers will notice. Don’t give them an excuse to take their business elsewhere. Diversify and create multiple streams of income to survive Brexit During uncertain times, keeping your business doing what it does best is vital. There’s a counterpoint to that important rule: While maintaining your core everyday business activity, you may also want to take this opportunity to consider diversifying your business and finding new sources of revenue. Any business that’s reliant on one market, one big customer, one major supplier, or one single product is vulnerable. Over-reliance on one thing is risky at any time, but especially so in uncertain times — and especially when it comes to revenue. That’s why, wherever possible, you should look for ways to grow your business through new revenue streams. This may mean Developing new products and services Expanding into new geographic regions Targeting new customer segments Partnering with or acquiring another provider who brings something new and exciting to the party Expanding your professional network After the United Kingdom (UK) has exited the European Union (EU) — assuming the UK exits under the terms of a withdrawal agreement — there’s then a formal transition period that’s likely to run until December 2020, but could run until December 2022, or later, depending on when the UK leaves. Think of this transition period as your innovation and diversification period. In other words, you’ve got X many months to a) think about where your company is going and how best to evolve and future-proof the business, and b) put those plans into action. Turn Brexit into an opportunity — that’s the message! Small businesses are at a big advantage here, because they can usually innovate, adapt, and respond to market changes quicker than huge multinational corporations, with their many layers of leadership and approval processes. If you’re a small business, find a way to take advantage of the market conditions. Don’t be afraid to experiment. Find out what works and what doesn’t for your business, keep pushing and always be growing. Working with a business adviser is a great way to identify and assess new business opportunities and find ways to grow your business. Look for a local business adviser or consultant wherever possible (perhaps through local networking groups or word-of-mouth recommendations). A local adviser can really get to know your business in depth, and the two of you can develop that important face-to-face rapport. Also, review your marketing efforts and don’t join the masses and cut marketing spend through fear. Try this mantra: Observe the masses and do the opposite, and you won’t go wrong. While your competition panics and loses market share through inaction, you can take this opportunity to get ahead! Keep staff engaged and motivated to get your business through Brexit Some of your employees may be EU citizens unsure of their rights in the UK after Brexit. These employees will obviously need clear information and support from your business. But whether your employees hail from Spain, South America, or Southend-on-Sea, Brexit uncertainty has the potential to cause unease among the workforce. People may have big fears about the business as a whole or, on a smaller scale, be worried about certain processes or their roles changing. Few things kill off staff engagement and motivation faster than uncertainty, so make sure to manage this carefully. For the most part, this is about communicating openly and clearly with staff on how the business will be impacted (if at all), where there may be changes, and how those changes will be managed. In other words, reassure your employees that you’re on top of the situation, and that there’s a plan (or that a plan is being developed, which is better than nothing). Above all, remind your employees of the business’s mission and goals at this time, and the need for everyone to keep doing what they’re doing — delivering awesome products and delighting customers with amazing service. If you aren’t already monitoring employee engagement on a regular basis, now may be a good time to start. Gone are the days of expensive, time-consuming annual staff surveys; these days, there are tons of inexpensive tools that can assess employee mood frequently, using just a few well-chosen questions. Communicate with your customers about Brexit Just as you should be communicating openly with your employees during uncertain times, you also need to be communicating openly with your customers and suppliers (more on suppliers coming up next). Your customers will need to know whether anything is likely to change after the UK is no longer part of the EU. For example, are overseas orders likely to take a few days longer? Are prices changing? Are you offering new products and services? In short, keep communicating with your customers, and reassure them that it’s business as usual in terms of your company delivering outstanding customer service. Make sure your customer communications don’t fall foul of General Data Protection Regulation (GDPR) rules. Communicate with your suppliers about Brexit The impact of the Brexit referendum on your supply chain will depend on what type of business you run and the suppliers you work with. But, whatever the impact (if any), it’s vital you maintain a clear line of communication with your suppliers. Are your suppliers keeping you up to date on any potential service changes or delays? If not, press them for more information and ask them for more regular updates. After all, you’ve got to keep your own customers informed. There may be times when the picture is a little foggy. A supplier may, for example, know that a particular process will change, but not yet have 100 percent certainty on how it will change. That’s understandable. What you need is transparent communication on what’s definitely happening, where there may be gray areas, and a timeline for resolving any unknowns. If both parties can maintain that open line of communication, you’ll be well placed to weather uncertainty together and emerge with a stronger, closer business relationship.